Dow, S&P 500 Fail 50-Day MA’s

MARKET SUMMARY

U.S. markets showed continued momentum on Monday with key levels of resistance back in play amid hopes for cooling trade tensions between the U.S. and China. Economic news was light but picks up throughout the week with Friday’s jobs report taking center stage. Fedspeak will also be present along with Q1 earnings as the major indexes continue to try and establish the next major trend.

The Russell 2000 showed the most strength after rising 0.9% and trading to a high of 1,586 with major resistance at 1,590 now in play. The Nasdaq climbed 0.8% after tapping an intraday high of 7,291 while pushing resistance at 7,300 and the mid-April intraday high at 7,319.

The Dow gained 0.4% after making a morning run to 24,479 while closing above the 24,000 level for the 2nd-straight session. The S&P 500 was also up 0.4% after reaching a peak of 2,683 and mid-April highs. Both indexes cleared their 50-day moving averages but levels that failed to hold.

TRADE OF THE DAY

TIMING IS EVERYTHING

ANALYST UPGRADES / DOWNGRADES

AutoZone (AZO) upgraded to Conviction Buy from Buy at Goldman SachsFirst Industrial Realty (FR) upgraded to Buy from Neutral at MizuhoIllumina (ILMN) upgraded to Overweight from Equal Weight at Barclays

Buckeye Partners (BPL) downgraded to Neutral from Buy at CitiFlir Systems (FLIR) downgraded to Hold from Buy at Drexel HamiltonSiriusXM (SIRI) downgraded to Neutral from Buy at Buckingham